Poverty Alleviation Projects

Poverty Alleviation Projects

Policy Framework: The National Economic and Social Development Plan prescribes the country’s development direction every 5 years. It aims at stimulating economic growth and improving the poverty situation & social and economic well- being of the disadvantage groups.

1. Rural Development  aims to increase financial opportunities in the rural areas by supporting capital markets in the rural area through decentralized system. Credit projects were established. Three government banks provide credits to self-employed producers. The Plan also supports income generation and career development for the people in the rural areas by recommending the establishment of National Rural Committees to enable policy formation. The corresponding projects are allocating land to the poor farmers, providing irrigation systems, and promoting community-shared forests.
2. Community Development concentrate on career and environmental development for the poor in the urban areas who are more vulnerable and less likely to escape poverty than those in the rural area. The strategies consist of buildings construction and slum areas improvement, through basic infrastructure and housing credits. 
3. Human Resource Development The plan highlighted the need for educational assistance for disadvantaged groups.The strategies include expanding basic educational opportunities to poor children, expanding special education and training for people in the border areas, and promoting basic education for workers in the industrial sector. Teacher project is established to grant scholarships to outstanding students who show a positive attitude toward teaching. School-lunch project is established to improve children’ health to improve their learning capacity and long-tern health status.

Projects: aim to stimulate the grass-root economy by increasing access to credit and creating career development opportunities for the poor. Many projects concentrate on strengthening the community and improving living conditions and environmental sustainability.

1. Micro/ Agricultural Credit 

• Village Fund  is the largest micro credit project. It allocates 1 million baht to rural villages and urban communities throughout the country to set up revolving funds. The fund will provide small, low-interest loans without collateral to all members who request loan and have difficulty gaining access to the formal credit system. The loans could be for a wide range of purposes: investment, career development, emergencies, utility payments. However, an empirical study of the Village Fund suggests that it has scarcely improved poverty in the country. This reason might be because lack of incentives at the administrative level to monitor whether the loans are spent on income-generation activities.
• Debt Suspension/ Dept Release helps small agricultural producers obtain release from debt burden.  It helps them to get a break in interest payments.
• People’s Bank project promote savings among group members. It provide loans for career improvement and small-scale investment. It targets on small entrepreneurs and private sector employees who wish to develop their careers or improve their business. It offers 3 types of services: savings, consulting, and loans.

2. One Tambon-One Product (OTOP) generates income and create jobs at community level across the country by developing community products for commercial purpose. The product must not contain imported or illegal inputs and must not violate property rights. The strategies include improving production processes, promoting marketing channels, and strengthening community networking.

3. Community Capacity Building (SML:Small, Medium, Large) promotes community participation in the community development process.The main strategy is to provide direct transfers for public use at community level. The project sorts villages and communities into small, medium and large. The village members select a committee to manage the transfer for the villages’ needs, such as investments in commodity storage, a village market, and organic fertilizer production. The village can cooperate with neighbouring villages and co-invest in larger projects, such as a community convenient store or an irrigation system. Three more types of very small villages: S1,S2, and S3 expanded in 2008 because there are plenty of small villages with populations of 200 and under.

4. Housing Credit targets on low-income employees as well as people in slum areas.  Eligible employees are those who do not own their own house or property and whose monthly household income is under 30,000 baht. The Government Housing Bank provides housing credit for a maximum period of 30 years, at a fixed interest rate for the first 3 years. Slum-area development project is established to improve the quality of life of the poor in urban areas, by emphasising community participation. The project consists of 5 operations; slum upgrading, re-blocking, land-sharing, reconstruction, and reallocation.